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Scott Kirby’s United compensation package
It was big news yesterday. Scott Kirby was leaving American Airlines. What happened? Did he leave or was he let go? Well Scott received a very healthy severance package and apparently a loose non-compete because we were informed later in the day that he was helming a newly made position within United…as their President. Holy smokes. If you follow any airline analysts the consensus was that this was quite a net positive for United. Looking into the SEC Filings it was a HUGE day for Mr Kirby. So what is Scott Kirby’s United compensation package?
Use Sec.gov to search any publicly traded company’s SEC filings
Yes, these are also on the company website, but I find it much easier just to go to the source for searches.
Go to Company Filings
United files under United Continental…not United Airlines.
Look for 8-k filings.
Because this was so recently announced it wasn’t difficult to find the filing that MOST likely contained the new agreement that was struck. Public companies must divulge 5 compensation packages of their executives. Because Scott has been in the top 5 at both American and United it was going to be filed. The terms are held within:
Scott Kirby’s United compensation package
Notables
- Base: $875k
- Bonus: 125% Salary
- LTIP: 625% of salary
- Sign on bonus of $5 million in options ( Black-Scholes valued at 25% higher than date of grant closing price)
- 2 vesting dates
- $2 million with a 7 year term, 1/3 vesting on years 1,2,3
- $3 million with a 10 year term, 1/3 vesting on years 4,5,6
- 2 vesting dates
- Total potential compensation with options: $12.4 Million
- This could obviously go up based on other perqs – this valuation is based off the current 8-k filing
As Pizza in Motion revealed earlier today… Mr Kirby received roughly $13M to leave American. I’m not sure this even included the vesting of options, NPV of his retirement package, etc.
While other United perquisites weren’t mentioned, and they’ll be disclosed in another 8-k soon, I’m sure they are quite nice.
In case you’re wondering, here was his AA pay.
Looks like Mr. Kirby has received a healthy bonus to his base salary of 660k in 2015. He hasn’t received a bonus in quite some time whereas United has a potential %125 bonus. We all know the big bucks are made off of RSU, LTIP, Options, etc. I haven’t dug deep into his contract which you can find here, but I’d imagine the large increase you can see in the third column ( Stock Awards) was a result of the US Air/ AA merger. Doug Parker ( the then head of US Airways) also received a LARGE stock award that year as well. Regardless…Mr Kirby has done quite well.
And some details pertaining to other compensation…interesting bits about his airline travel benefits. Pizza in Motion wrote an article earlier today showing some of those perks he’ll maintain in perpetuity. Perpetuity! I’d imagine that Mr. Kirby secured a commensurate package with United. The most surprising element of the package was the relatively low value of those flight privileges, $12,381 for Mr Kirby in 2015.
Would like you like to learn more about Mr. Kirby’s Executive Travel Privileges?
- His plan falls under: “Travel Privileges entitled American Airlines Group Positive Space Leisure Travel Program for Officers of American Airlines”
You can read all about that here:
http://www.amrrc.net/documents/Travel_QAs_01_02_14.pdf
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Chase Sapphire Preferred® Card
Welcome Offer
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
Annual Fee
$95
Points Earned
Transferrable Chase Ultimate Rewards
- 5x on all travel purchased through Chase Travel℠
- 3x on dining, including eligible delivery services for takeout & dining out
- 3x on select streaming services
- 3x on online grocery purchases
- (excluding Target, Walmart and wholesale clubs)
- $50 Annual Chase Travel Hotel Credit via Chase Travel℠
- The begins immediately for new cardmembers and after your account anniversary for existing cardmembers
- 2x on all other travel
- 10% Anniversary Bonus
- Every year you keep the card, your total spend will yield a 10% points bonus. If you spend $10k in a year, you’ll get 1k bonus points
- Chase Sapphire Preferred continues to redeem at 1.25c in the Chase Travel℠ and the slew of other benefits remain in tact including Auto Rental Collision Damage Waiver ( primary ), purchase protections, etc.
- Points are transferrable to 14 Ultimate Rewards partners
- Redeem in Chase Travel℠ for 1.25 cents per point
- No foreign transaction fees
- Suite of Travel and Purchase Coverage
- Auto Rental Collision Damage Waiver is my favorite
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
- $95 Annual Fee
We keep an up to date spreadsheet that lists the best ever offers: You can find that spreadsheet here.
Historically 80k is a very, very good offer and hit in both 2022 and 2023. In 2021, we saw the offer hit an all time high of 100k. Who knows if that will ever come back.
Main Cast:
Cards that earn flexible points and should be used on the bulk of your purchases.
Supporting Cast:
Cards that earn fixed points in the currency of the airline/hotel and can not be transferred at attractive rates. These cards yield benefits that make it worth keeping, but not necessarily worth putting a lot of your everyday spend on.
The Chase Sapphire Preferred® is exceptional starter card and offers transferrable Ultimate Rewards, and pairs well with other Chase cards.
If you carry this card alongside Chase’s cashback cards like the Chase Freedom Flex® and Chase Freedom Unlimited® or the business versions: Ink Business Cash® , Ink Business Unlimited® you can combine the points into Preferred account and transfer into hotel and airline partners
Annual fee is quite low at $95 a year + you get a 10% anniversary bonus on points + $50 hotel credit in Chase travel.
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